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Evo-ERP and DBA Classic >> Manufacturing >> Outside Processing Costs
http://www.istechforum.com/YaBB.pl?num=1146235751

Message started by gina on 04/28/06 at 06:49:11

Title: Outside Processing Costs
Post by gina on 04/28/06 at 06:49:11

I am looking for some clarification with the following process...A PO is processed/received for an outside process tied to a work order (the work order # is entered in the WO # filed on the PO). The WO is posted/closed. The invoice from the vendor is received after the PO is closed and the charge from the vendor for the outside process if higher than was entered on the purchase order. What steps need to be taken so that the cost of the job is accurate? Or, although the WO was closed prior to the invoice being entered, will DBA automatically update a closed WO with the correct charge from the vendor and the cost of the job be reflective upon that info... Thanks in advance.

Title: Re: Outside Processing Costs
Post by Lynn Pantic on 04/28/06 at 13:12:20

The total Job Cost will be adjusted to reflect the change in processing cost (as seen in JC-A) but the actual cost of the finished good(s) and resulting COGS by invoice will not. The affect of the price change will instead show as WIP Variance. The AP-C program will add the cost into the WO for JC purposes and immediately take it back out as WIP Variance maintaining the net 0 cost in the closed WO.

Title: Re: Outside Processing Costs
Post by shadowcaster on 05/01/06 at 14:21:04

So your saying everything will be ok ?

J Dub

Title: Re: Outside Processing Costs
Post by Lynn Pantic on 05/01/06 at 15:22:09

Everything except the profit by invoice (SA module) reports. They will not include the price change but will reflect the item cost based on the WO-I prior to the invoicing. The price change will be reflected on the Income statement in WIP Variance rather than GOGS.